Deal Analysis Help- 2 separate SFRs on 1 Lot

[Seth M.]

Hi everyone,

I'm currently under contract for 2 SFR units on 1 deed in Norman, Oklahoma and would value your advice as their are a few elements that are new for me.

Analysis snap shot below. Typically we are focused on a more traditional BRRR approach but this one had a unique potential value proposition that we wanted to explore under contract. Underlying principle for our deal analysis is that while we value cash flow to expedite saving for future deals, we are much more weighted towards 1) great deals at purchase, 2) long term appreciation potential, and 3) getting as much of our capital back after refinancing as possible to repeat. The analysis below makes sense from a cash flow perspective (especially given rent potential) but our main concern is tying too much of our capital up if we don't have enough spread between our cash in at the LTV% at refinance.

• Both units have existing tenants. Unit 1 is $625/month with lease locked in till Feb 2018. Unit 2 is $695/month with month to month lease. Market rent potential is conservatively $750 each with much of the neighborhood averaging $850 for similar Bed/Bath sq ft.
• Comp average is dragged down because of two recent large purchases in the area of 20+ duplexes at a time resulting in 4 larger duplexes in the vicinity sold for 119k. But it is R2 zoning with separate utility meters potentially giving the option for subdividing and refinancing as separate SFRs. My current ARV of 130k in the analysis below is almost certainly too high if we can't split it unless I find a lender that places more emphasis on rental income in addition to comps than the current lenders I've spoken with.

Overall thoughts on the analysis below?

Understanding that is very specific to the county where I'm purchasing, any general advice on next steps/contacts for confirming whether this lot can be split?

Thanks!